Coupang GMV: South Korea's Top Marketplace

Coupang GMV: Key Insights

• Market Dominance:

  Coupang has strengthened its position in the South Korean eCommerce market, achieving a fivefold increase in GMV from 2019 to 2023 and becoming the top online marketplace and leading online store in the country.

• Global Ranking:

  On the global stage, Coupang ranks 10th by eCommerce revenue and is the 9th most valuable eCommerce company worldwide, with a market value of US$36 billion.

• Factors of Success:

  Coupang's success is driven by fast delivery services, a diverse product range, and strategic logistics alliances. Notable investments in Coupang Play and a strong IPO have also contributed to its global market positioning.

Asia is a flourishing eCommerce region, particularly known for its vibrant online marketplace scene. This is evidenced by the fact that four of the top five marketplaces in the world by total GMV (Gross Merchandise Volume) are based in Asia.

While China leads the Asian eCommerce market by far, holding US$2.2 trillion in revenue, its biggest rival is the South Korean eCommerce market.

The fourth biggest eCommerce market - only behind China, United States and United Kingdom - has a very strong local marketplace: Often referred to as the "Amazon of South Korea", Coupang, Inc. has already surpassed the GMV of Taobao in the South Korean market.

Coupang GMV: Fivefold Growth Since 2019

Coupang’s GMV development over the past 5 years is impressive:

• While Coupang processed US$10.8 billion worth of purchases in 2019, GMV has increased fivefold in just 5 years, reaching US$49.7 billion by 2023.

• The Corona years 2020 and 2021 were especially strong ones, bringing along an impressive 86% year-on-year growth in 2020 and 75% in 2021 for Coupang.

• For the next years, ECDB expects growth to continue, with 17.7% YoY growth for 2024 reaching US$58.4 billion in GMV.

South Korean eCommerce Market:
Coupang Dominates

How does Coupang compare with other online marketplaces in the South Korean market? The answer is clear dominance:

• With almost US$50 billion of GMV in 2023, Coupang is the top online marketplace in South Korea.

• In second place comes the marketplace Naver with US$27.6 billion, which amounts to almost half of Coupang's GMV.

• They are followed by Gmarket and Kakao holding US$7 billion and US$6.6 billion as GMV for 2023.

• One of the Alibaba marketplaces, Taobao, only shows up at number 5 with US$5.6 billion in GMV.

Top 5 is followed by marketplaces that have South Korea as their main country: 11Street (US$5 billion), SSG.com (US$4.8 billion), Wemakeprice (US$4.1 billion), and Lotte (US$3.4 billion). Alibaba's Tmall rounds out the ranking with a GMV of $3.3 billion in 2023.

Top Online Stores in South Korea

Coupang's influence in the South Korean market is even more pronounced when we look at top online stores by net sales. By 2023 numbers:

• Coupang.com is South Korea's leading online store, with net sales of US$21.1 billion.

• In second place is ssg.com, having generated revenues of US$1.2 billion.

• Third rank is nike.com with US$1.1 billion, followed by e-himart.co.kr, which generated a rounded US$1 billion in 2023.

• Ranked fifth is gmarket.co.kr with US$888 million.

Coupang on the Global Stage

Despite being highly successful in South Korea and Asia, Coupang's achievements don't stop there.

Let's zoom out a bit and see how the retailer stacks up against global giants.

By eCommerce activity revenue, Coupang as a company is ranked 10th globally. With US$55 billion last year, the company is only behind the likes of Alibaba, Amazon and PDD.

How about market value, is Coupang also among the top names when it comes to market capitalization?

Valued at US$36 billion in June 2024, Coupang is the 9th most valuable eCommerce company worldwide.

But enough with numbers: Let's focus on the qualities that have made Coupang a household name in South Korea, Asia, and the world.

What Makes Coupang Successful?

Coupang, established in 2010 by Bom Kim, a Harvard Business School dropout, has rapidly ascended to become South Korea's foremost eCommerce company. Serving as a preferred shopping destination for Korean households, Coupang offers a diverse product range on its online platform.

Fast Delivery

A key distinguishing factor is its emphasis on swift delivery, catering to the Ppalli Ppalli culture of South Korea, which demands rapid service.

To meet the need for speed, Coupang launched its "rocket delivery" service in 2014, ensuring products reach customers' doorsteps within hours or by the next day. Additionally, the premium Coupang Wow subscription provides members with perks such as faster shipping and exclusive offers, enhancing the shopping experience. The company's advanced delivery framework includes an in-house delivery system, allowing Coupang to bypass third-party services and deliver within 24 hours.

Coupang's strategic focus on delivery and logistics infrastructure is pivotal. The company has forged strong alliances with suppliers, third-party vendors, technology partners, and logistics providers to boost operational efficiency and service quality.

Coupang Play

Expanding beyond its primary eCommerce operations, Coupang is heavily investing in Coupang Play, its video streaming service, to compete in South Korea's vibrant over-the-top (OTT) market. Introduced in December 2020, Coupang Play follows a subscription model akin to Netflix and Apple TV.

In 2021, this OTT service became an additional benefit for Coupang's WOW members and online shoppers, costing US$2.1 (KRW 2,900) per month, and included perks like cash back and guaranteed delivery services.

IPO Success and Global Market Position

Coupang went public on the New York Stock Exchange in March 2021, with its stock price soaring 40% on the first day, marking one of the year's largest IPOs (initial public offering). Notable investors, including Bill Gates, participated. Following its successful U.S. market debut, Coupang raised US$4.6 billion.

Coupang's dedication to rapid delivery, an extensive product catalog, and strategic investment in ancillary services have driven its growth in South Korea and internationally. Notably, among the top 10 online fashion marketplaces, Coupang jumped from 17th in 2020 to 10th in 2023. The company also established a presence in Seattle in 2018 to tap into the area's rich tech talent and benefit from the retail, logistics, and eCommerce expertise of local giants like Amazon and Costco.

Coupang entered the Fortune 500 in 2023 at number 195. Globally, it ranks 10th in eCommerce revenue, with US$55 billion last year, trailing only Alibaba, Amazon, and PDD.

Sources: Coupang, NPS, Edaily, Business Korea, CNBC, Yahoo Finance, Statista, ECDB